Lehman price and volume chartsQuestion for you traders
Lehman opened at $0.26 today, rose as high as 0.34, dropped to 0.15 and is now (well, 15 min. delay) trading at 0.18. The company is bankrupt and almost by definition, the shareholders are wiped out and the shares should be worthless. I can understand someone selling this stuff but who's buying it? This phenomenon seems to occur in other bankruptcy situations, too, and I've never understood it. Shorts who have to buy what they sold? Befuddled old grannies? An explanation would be welcome.
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3 comments:
Yes part of it is shorts. But part of it is vulture investing - that there is a chance - a slim one, but a chance nonethless - that there is more value than thought. Perhaps Barclays will buy the broker/dealer and Neuberger Berman will get sold. Perhaps once that happens and all the liabilities are netted against the assets, there will be some value.
And maybe the government will step in and help out even though they've said they wouldn't!
whatever, it's like the old "All you need is a dollar and a dream" lottery ad. In this case, it's $0.24 and a dream.
C.E.A.
I bought LEH yesterday (9/15/08) right before the close at $ .20
It's now (9/16, 10:45 AM) at $ .25
That's up 25%, so that last writer's comment really holds true. Al least for the moment.
It closed today at$0.30. I'd take the money and run but then, I'd have sold Microsoft the first time it doubled in price. Somehow, though, I don't see Lehman as the next Microsoft.
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